Auto-enrolment to hit 200,000 jobs

Jenna Towler
clock

Auto-enrolment could lead to 200,000 job losses at smaller firms as labour costs will increase by around 2%, academic research predicts.

From 2012 workers will be auto-enrolled into a qualifying work place pension, or the personal accounts scheme, unless they opt-out. Pension Commission, and later the department for work and pensions, research estimated labour costs of 0.6% for all firms, and 1.1% for the smallest firms. However, a study from the University of Warwick’s Institute for Employment Research said the figure would stand at 2% when administration, target market salary levels and predicted take-up rates are taken into account. Author Bernard Casey surveyed small employers and questioned them on th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read
Pension freedoms exposed a longevity problem we still refuse to confront

Pension freedoms exposed a longevity problem we still refuse to confront

'The gap between product complexity and consumer understanding is not narrowing'

Julia Fintz
clock 11 March 2026 • 4 min read
Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Administration expected to conclude in 2027

Isabel Baxter
clock 10 March 2026 • 3 min read